Rambler Metals & Mining Share Discussion Threads

[candybelle] 07/12/2012 09:47

Thanks Daz.

[daz] 07/12/2012 09:42

George Ogilvie presented, here are a few notes

Dividends/Share buy backs
He made it cleat that the immediate priority is to pay off loans, the Sprott loan carries an interest rate of 9.25%, so clearly common sense. The company also wants to build up a cash position in the medium term, to provide funding for future projects.

Strategy
During the presentation, George spent some time talking about Maritime resources, in which the company have a 17% stake, who own the former Hammerdown gold mine. They have NI43-101 resource statement due in Q1 2103. It was stated they only have 400,000 in cash and so will require further cash to continue. In an environment where mining finance is hard to come by, this gives Rambler a number of options. If the drilling results are good, they can opt to maintain or increase their stake and could even make an outright bid.
After the presentation, I asked whether the companies priority was Maritime or the LFW and George said quite clearly Maritime.
It was quite reassuring to hear George describe the LFZ as a marginal project as the IRR of 18% was not high enough for projects to get of the ground these days, he said that 25% was more normal.

General
Reading between the lines, I think the company are quite happy to accumulate cash, knowing this puts them in a very strong position to pick and choose the projects they want to go ahead with.

Forecasts
The company said they aimed to produce 6008 tons of copper with a recovery rate of 92.4%, which is a little higher than being achieved at the moment.
Gold is forecast to be 7,500 - 9,000 oz. The company started reprocessing tailings in Nov, if they can repeat the lab results, this would push up gold recovery to 85% and add 4,000 oz to give a possible 11,500 to 13,000oz.

Other
Snowy, re your other questions
The 10% deferred payment is due to the company, so presumably they invoice at a discount to the copper price.
The price paid is for dry tonnage, so if as the company say, they ship with an 8.3% moisture content, then this is subtracted from the tonnage to arrive at the price.
The storage Warehouse is capable of holding more than designed
The concentrate shipped if of good quality: lead and zinc content is below 2%, a level at which they would incur penalties and there is no deleterious material, it was high quality concentrate much in demand because it could be mixed with lower quality material.

All in all, there wasn't much new news but the company do appear to be putting themselves in a strong position to make the most of the opportunities that present themselves.

[rogsim] 07/12/2012 09:05

MV Qamutik is now moored off Algeciras, having sailed from Huelva, so the concentrate must have been unloaded.

[jgraggaber] 06/12/2012 23:00

Any news on the presentation?

[davidblack] 06/12/2012 08:42

AGM at 2.30 today at 20 Old Bailey

also Proactive where they are on first at 6pm

[redhill] 05/12/2012 08:23

snowydays

GO was saying production is 2000-2500 per month in the interview.

[tallsiii] 04/12/2012 16:43

I like this company. I am going to the presentation on Thursday. Is anyone else going?

[snowydays] 04/12/2012 16:42

Thanks timberwolf. That one has yaken quite a few weeks to emerge. Maybe there will be another video interview this week.

tallsiii, I'm not sure which part you wanted a link to. If you mean that production has improved from October it was in the RNS on 29th Oct declaring commercial production.

"Development and run of mine head grades have been steadily
increasing as thicker parts of the ore body are accessed. Over the last
two weeks mill head grades have been averaging 4.5% copper with 1.7 g/t
gold "

That compares with earlier reports from May when the concentrator was commissioned with just low grade LFZ ore of less than 2% Cu.

The 29th Oct RNS stated that there were 7,300 tonnes of concentrate in storage. The ship left with 8,873 tonnes up to 23 Nov so that implies about 1,900 tonnes of concentrate produced over a full month in November.

1900 tonnes at 28% copper and 8g/t gold would be about $5m of production with costs of about £2.5m. That is mildly disappointing but still over £2m free cash flow once full revenue is received. Even the 90% payments provide good cashflow. Forget the £25m by year end 2012 nonsense though.

[timberwolf3] 04/12/2012 14:29

Just spotted this ;

[tallsiii] 04/12/2012 14:23

Ah ok, was hoping it was something like that. Was searching through the rns, but couldn't quite see it, do you have a specific reference for that info?

[snowydays] 04/12/2012 09:03

tallsi, Regarding the revenues from the gold production phase, 32% of the gold was paid directly to Sandstorm as part of a gold loan agreement. As such the free cash generated by that phase of gold mining was very little.

The revenues from the gold campaign were offset against development costs in the accounts as the company had not declared commercial production. This has the benefit of preserving Ramblers tax credits. A perverse consequence of setting revenues against development costs is that the more money Rambler makes, the lower the book value of Rambler's assets.

Cashflow has only really been strong for the last two months as higher grades from the 1807 zone have been mined. Hopefully we will get an update on the cash position this week so we can see if it is improving.

[rogsim] 04/12/2012 08:20

MV Qamutic is scheduled to arrive at Huelva in ten hours.

See:

[tallsiii] 03/12/2012 22:54

I really like the look of this company, but it seems that if they did have the revenue when they said, then they should have more cash in the bank?

At October 19, 2012 the Company had $6.5 million in cash and cash
equivalents.

[tallsiii] 03/12/2012 22:52

Why didn't they book the $25m of revenue from the gold into the year ending 31-Jul-12?

[snowydays] 03/12/2012 11:22

So the concentrate will be shipped to Atlantic Copper's smelter in Spain which you can read about here:



Daz, if you don't mind, this is something else which it would be nice to have clarified. Does the 90% provisional payment mean 90% upfront and 10% later or is the 10% kept by Transamine to pay for shipping, smelter fees and their profits?

[snowydays] 03/12/2012 09:17

The MV Qamutik, clearly the crew like the cold.

I'm not sure if the figures above are the metal content of dry concentrate of if they allow for the water content.

8,873 tonnes at average 28% copper = 2484 tonnes copper
8,873 tonnes at average 8g/t gold = 70,984g gold = 2,290 oz gold
8,873 tonnes at average 45g/t silver = 399, 285g silver = 12,880 oz silver

That's about $24m of metal before smelter charges etc. Or perhaps 8.66% less if we have to subtract the moisture content first.

[bashers2] 03/12/2012 08:34

Starting to come together nicely imho.

[p@] 03/12/2012 08:16

HIGHLIGHTS

/T/

=- A bulk cargo vessel, the MV Qamutik, called to port on Friday 23
November 2012. The vessel was completely loaded, trimmed and surveyed
with 8,873 wet metric tonnes of copper concentrate by Sunday afternoon
=- The Company's own sampling estimate of grade for the concentrate shows
it ranging between 26-30% copper with 6-10 g/t gold and 40-50 g/t
silver. Moisture content at the time of loading was 8.66%, below the
products transportable moisture limit ('TML') of 9.15%
=- The Company has also initiated payback of the C$7.5 M borrowed from
Sprott Lending, with the first repayment of C$500,000 made on 30
November 2012

[killing_time] 03/12/2012 08:01

RNS out.

The concentrate has been shipped to Spain and we have payed $500,000 off our loan.

[snowydays] 02/12/2012 13:08

Old article. I don't think it's been posted here before.

[snowydays] 01/12/2012 17:32

Daz, thanks. Good to know that someone here will be attending and I look forward to reading your report.

Presumably they will cover most of the things which everyone will want to know, e.g how cash is building, production forecasts and exploration results if any of these things are available. A couple of other things I would like to know if you don't mind asking:

1. Are they still considering a share buyback programme and if so why was there no motion at the AGM to authorise this?

2. Is there a copper price below which they will put on hold any plans to expand into the LFZ as a bulk mining operation?

3. Have they started secondary processing of the tailings via the hydromet? Once this is up and running is it feasible to blend the high grade ore with gold rich 1806 ore instead of LFZ ore to keep the copper grade below 5% ?

Hope you enjoy yourself.

[daz] 01/12/2012 10:42

Snowy - I'll be going. Will make some notes and post. Did you have any questions you wanted to ask?

[engelo] 30/11/2012 23:46

Fwiw One2One Investor Forum's intro:

It has been a transformational year for Rambler Metals & Mining. The company recently moved its flagship Ming copper-gold mine in Newfoundland, Canadainto production – a huge milestone for Rambler. Analysts at Seymour Pierce suggested earlier this month that the miner is well-placed to expand in Newfoundland by snapping up M&A targets in the region. Shares have risen 40% so far in 2012 so come along to find out how the company plans to build on its recent success when CEO George Ogilvie presents.

[snowydays] 30/11/2012 17:44

This could be a good time for the concentrate to have been shipped. Seasonally the winter is the strongest time of year for copper prices as the American construction industry rebuilds inventories ahead of the summer construction period. Although we have received 90% provisional payment the final price received presumably depends upon the price received after the copper has been smelted and sold, perhaps in another month or two depending upon where the concentrate is shipped to.

Is anyone here attending the AGM and/or presentation next week? I am unable to attend in person.

[killing_time] 29/11/2012 19:50

For anyone who doesn't read the iii site, the ship loaded up then left port on Sunday, with thanks to ManicMiner.